Kochi Shipwreck: Kerala Government Opts for Insurance Route, Avoids Legal Action Against MSC

Kochi Shipwreck: Kerala Government Opts for Insurance Route, Avoids Legal Action Against MSC

Thiruvananthapuram: In the aftermath of the sinking of the cargo vessel MSC LSA-3 off the Kochi coast, the Kerala state government has decided not to pursue legal action against the shipping company. Instead, it will seek compensation solely through an insurance claim, a decision taken in coordination with the Union Ministry of Shipping.

The resolution emerged after high-level discussions between Chief Minister Pinarayi Vijayan and Director General of Shipping Shyam Jagannathan on May 29, in the presence of Chief Secretary A. Jayathilak. Though the state suffered significant losses due to the maritime incident, it has opted for a non-confrontational approach, prioritizing diplomatic and economic considerations.

Initially, the government considered filing a case against Mediterranean Shipping Company (MSC), the operator of the sunken vessel. However, it was ultimately decided that pursuing litigation could strain relations with MSC, especially as the majority of vessels expected to dock at the upcoming Vizhinjam International Seaport belong to MSC.

Instead of legal proceedings, the government will focus on documenting the extent of damages caused by the incident and submitting these as part of the insurance compensation process. A note prepared by Chief Secretary Jayathilak emphasized the importance of evidence collection, stating it will be “crucial for a successful claim.”

The cargo vessel MSC LSA-3 sank on May 25 near the Kochi shoreline, raising environmental and economic concerns. With this strategic move, the government hopes to secure reparations without disrupting its long-term commercial relationship with one of the world’s largest shipping companies.

The state now shifts its attention to the assessment and verification of damage incurred, preparing a robust claim that ensures due compensation, while steering clear of prolonged legal entanglements.

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